Is Binance moving to the United Arab Emirates?

Driven out of the US and Europe: is Binance looking for a new home in the United Arab Emirates (UAE)? The cryptobroker wants certainty in the build-up.

Because of the many allegations, Binance is facing great resistance in the US. Reason enough for European authorities to distrust the crypto exchange as well? At least such a picture has been emerging for a few weeks. The Netherlands made the move, followed by Britain, Belgium and most recently Austria. Despite the recently passed MiCA regulations, Binance is being barred from Europe, so to speak. The next target: the United Arab Emirates (UAE)?

For Alex Chehade, there are many good reasons why the country could become the next big crypto hub. Speaking to Cointelegraph, the general manager of Binance Dubai confirmed that the UAE is an excellent destination for crypto companies looking for a clear path forward. "Binance is in the UAE because we have received the assurance that we can continue to build the operation for the future," Chehade said. A certainty apparently no longer guaranteed in the U.S. and Europe.

With the help of Binance: new crypto hub?

In addition to targeted regulations, the influx of young people to the UAE is leading to a faster establishment of digital assets than in other locations. According to World of Statistics data, nearly 30 percent of the total population in the UAE owns cryptocurrencies. This puts the country in first place, ahead of the U.S. and Singapore.

The Binance manager sees one reason in immigration from Europe and Asia. The overall population is also "younger." They know that "younger people have a more positive attitude when it comes to virtual assets." This is not seen as often in other crypto hubs, he adds.

Binance has already been licensed as an anchor company at the Dubai World Trade Center in March 2022. The crypto exchange had been seeking a connection to the new crypto hub in the desert for some time. With a 2021 agreement in place, Binance aims to help national authorities make the location more attractive to the crypto industry. The relationship may be all the more important now, after the turmoil in the U.S. and Europe.

UAE: With regulations to the goal

The United Arab Emirates (UAE) introduced its first crypto regulation back in 2018. After that, however, it will take about four years for Web3 companies to establish themselves in innovative cities such as Dubai. Regardless, the megacity has been pushing blockchain development for several years and even already has its own crypto-payment system. In addition, the Persian Gulf country is also looking to expand its mining sector.

But despite extensive regulation, crypto companies still have problems with regulated access to banks. This is due to the country's complications with the Financial Action Task Force (FATF). This creates difficulties in accessing the international banking system and, ultimately, doing business in the crypto industry.

However, the UAE is working on this at a rapid pace. Under new regulations, for example, the issuance of privacy coins has been banned. Experts expect the FATF restrictions to be relaxed by the end of the year. This should help the country grow into a new crypto location. Whether Binance will participate in this remains to be seen.